Download a free sales invoice template in Word format

What is a sales invoice?

As a business owner, it’s essential to understand what a sales invoice is. In basic terms, a sales invoice is a legal accounting document that records a transaction between you, the business owner, and your customer.

Regardless of the type of business you run, every sales invoice should always provide the information surrounding the services or products provided to the client, plus the payment details and terms to help ensure you will get paid.

Our free sales invoice template is good for:

• Businesses that make sales from a brick-and-mortar store, like florists, cake makers, clothing designers, jewelers, etc.

• E-commerce businesses that make sales through a website or other online channels and need to charge for things like sales tax in different states or shipping.

• Sole proprietors who do business without a physical location or company website, like makeup artists or landscapers.

You can use our free invoice generator to help create and customize the best sales invoice in Word for your business. Pay only when you get paid.

How to create an invoice from a blank sales invoice template

Start with our sales invoice template for Microsoft Word. In a few easy steps, you can create a professional template with your company’s logo and contact information. You can choose to bill by item or hourly and list the product or services you provided. You can even set up partial payments or give customers the option to tip.

Types of sales invoices

As you move forward in your business, there are various types of sales invoices you may need to use, such as:

• Standard invoice: Also known as a final invoice, this is the most common invoice for businesses. It’s what companies issue to their customers to bill for goods or services and get paid.

• Credit invoice: This type of invoice is issued when a business needs to refund or offer a discount to a customer.

• Recurring invoice: Recurring invoices are best for businesses that bill on a consistent schedule, be it weekly, monthly, or yearly.

• Debit invoice: Debit invoices happen when a business needs to increase the amount a customer owes them.

• Mixed invoice: A mixed invoice consists of both credit and debit invoices in one, and the resulting balance can either be positive (as in the customer owes an amount) or negative (in which the customer is owed a credit).

• Pro forma invoice: This type of invoice serves as an alert for how much a project or service will cost once the work is completed.

• Interim invoice: An interim invoice is another way to denote a payment plan. Instead of sending one large invoice to your customer, interim invoices break down the cost into smaller payments as the project progresses.

How to customize your free sales invoice template

When using our blank sales invoice template, you can customize it to your specific business requirements. Modify the layout and design (including font type, size, and color), upload your company logo, and include all relevant company and client information. You’ll also need to add information on the service or product you provided, plus any applicable payment details and terms.

Note that, at a minimum, your sales invoice should include basic information about your business as well as the details of the service you’re providing to your customer.

Itemizing your sales invoice

Supplying as much information about the products or services provided helps you avoid any potential delays in payment. After all, the whole purpose of a sales invoice is to get paid. You also want to be as transparent as possible when sending an invoice, making sure to specify not only your rates but also the terms for payments.

Remember that your invoice may serve as your customer's receipt, so be sure to list the price for each item, as well as any discounts or credit memos, taxes, or additional fees for things like shipping.

When itemizing your invoice, consider what's normal for your industry. If it's standard practice for a seller to include the unit price, cost for shipment, sales tax, or a copy of the sales order, make sure to include it. Find out if buyers expect a seller to provide a separate tax invoice. You don't want to cause any confusion for your buyer and risk late payment.

In terms of how to itemize an invoice, a sales invoice should generally include the following:

1. Service details: Be as clear as possible when describing the product or service you’re providing. Be sure to supply a price breakdown if the customer purchased multiple quantities of an item or received a discount on the sale.
2. Service date: Including a service date is optional, but if you decide to note it, this would be the date of the transaction or the date you performed the service.
3. Description: Be specific. For example, if you sell furniture, you may want to say something like, “Oak dining table and four chair set.” Being clear and descriptive about the item you're selling lets your customers know what the invoice is for, and can save you time in follow-up questions.
4. Billing rate: Depending on the product or service you sell, you may want to bill by hours, quantity, or per transaction—look for a financial accounting tool that gives you flexibility to bill whichever way your business needs. How do you calculate tax? Do you accept partial payments or only the total amount? Consider factors like these when you decide how to manage your accounting.
5. Notes: Including messages to your invoices can add a personal touch. Whether you add a delivery note that says, “Thank you for shopping with us” or “Hope to see you again,” this section can help you make a lasting impression.
6. Terms and conditions: Include invoice payment terms and accepted payment methods in your terms and conditions (or notes) section. This is also where you mention your terms for late or early payments. And if you’re sending your purchase invoice to an international customer or vendor, clarify which currency you’re invoicing in and include any local or industry-related requirements.

The benefits of using our free sales invoice template

There are many benefits to using our free sales invoice template. Here are some of the biggest pros:

• It makes it easy for customers to understand what they are being billed for, which, in turn, may reduce potential problems and misunderstandings later.

• A consistent invoice design allows businesses to look professional.

• You’ll save time from creating numerous invoices from scratch.

Alternative file format to Word document sales invoice template

Besides our Word document sales invoice template, you can create invoices in other file formats depending on your business needs:

• Excel format sales invoice: Sales invoice templates in Excel formats are best for businesses that want to create tables and use automatic formulas when billing.

• PDF format invoice: Sales invoice templates in PDF format can help businesses look more professional to customers and clients. Use our online invoice generator to get started.

• Mobile apps: You can also create sales invoices through mobile apps, allowing you to create and send invoices on the go in minutes, so customers can pay right away.

Tips for completing sales invoices

Some industries may require mentioning specific terms and conditions on your sales invoice template, so be sure to check the special requirements for your business.

It’s just as important to determine the invoice payment terms in advance (when you take the order or sign the contract), and your invoice should reflect that.

To learn more about invoicing payments and terms, review our guide.